PaulDEGrauweof the University of Leuvensays that ifBritaincouldn't roll over its debtatacceptableinterest rates, itcouldultimatelyforce the Bank of England to buyit.
"The political consequences of austerity have been borne by the Monti government, while the European institutions that have enforced it go free, " Mr. DeGrauwe said.
By pooling risk, Eurobonds could be a more durable counter to such destabilising liquidity crises, argues Paul DeGrauwe, an economist at the Catholic University of Leuven, in Belgium.